Foreign Direct Investments (FDI) are a significant driver of economic growth and development.
Most East African countries are fairly successful in attracting FDI. In 2014 FDI amounted to 2 per cent of the GDP in Rwanda, to 2.3 per cent in Burundi, to 4.3 per cent in Tanzania and to 4.5 per cent in Uganda. In Kenya, however, FDI amounted to just 1.1 per cent of the GDP.
Analysts believe that terrorism, political instability, excessive red tape, and the high costs of energy in the country deterred international investors from investing in Kenya.